Explanatory note

England and Wales

(This note is not part of the Order)

These Rules set out the procedure for the postal administration process under Part 4 of the Postal Services Act 2011(c.5) (“the Act”). Postal administration is a special insolvency regime specifically created for companies that are designated under section 35 of the Act as universal service providers.

The main features of postal administration are:

(a)

the company enters the procedure by court order on application by the Secretary of State or with the consent of the Secretary of State, by OFCOM;

(b)

the order appoints a postal administrator;

(c)

the objective of a postal administration is to secure that a universal postal service is provided in accordance with the standards set out in the universal postal service order; and

(d)

in other respects the process is the same as for normal administration under the Insolvency Act 1986 (c.45), subject to specified modifications.

Part 2 of these Rules sets out the procedure for applying for a postal administration order.

Part 3 of these Rules sets out the initial steps to be taken in postal administration proceedings.

Part 4 of these Rules governs the conduct of creditors and company meetings.

Part 5 of these Rules contains provision relating to an application to court for authority to dispose of property subject to a security.

Part 6 of these Rules provides for the priority of expenses of the postal administration.

Part 7 of these Rules contain provision relating to distribution to creditors, including as to proving debts and quantifying claims.

Part 8 of these Rules contains details of how the remuneration of a postal administrator will be fixed by the court.

Part 9 of these Rules set out the arrangements for ending a postal administration.

Part 10 of these Rules set out the requirements and procedures for replacing a postal administrator.

Part 11 of these Rules contains general provisions detailing the court procedure and practice for postal administration.

Part 12 of these Rules contain provisions for the use of proxies at creditors’ or members’ meetings.

Part 13 of these Rules set out the provisions for examination of persons where an application to court has been made by the postal administrator under section 236 of the Insolvency Act 1986.

Part 14 of these Rules contain miscellaneous and general provisions.

Part 15 of these Rules contain provisions of general effect.

Part 16 of these Rules contains further interpretation and application provisions.

Schedule 1 to these Rules contain the forms that are to be used in postal administration proceedings.

Schedule 2 to these Rules contains specific details of the punishment of offences under these rules.

A full impact assessment has not been produced for this instrument. An Impact Assessment for the Act is available on the BIS website.